Sitting on Cash

This article relates to my blog entry about corporate inversion. Bringing cash into the country has so many barriers that companies are simply letting it sit. An infusion of corporate cash in the economy may cause some issues but far fewer than keeping the cash in a vault. America has a right to provide a disincentive to keeping cash overseas, it undermines the tax structure and removes it from circulation; but it has to realize that people are doing it anyways and getting that money back would benefit everyone. It’s an interesting policy debate that has been ongoing for years, it’ll be interesting to see what happens.

Barataria - The work of Erik Hare

If you’re like most people living paycheck to paycheck, you have a simple problem at the end of the month – not enough cash. There’s nothing to be embarrassed about here – it’s a common problem that is faced by a large number of families as the economic recovery struggles on.

But if you’re an S&P 500 company, you may have a different problem – too much cash. Not precisely too much cash on hand, that is, since that’s never a problem. You may have something like cash sitting around somewhere in the world that you have trouble bringing home to make use of the way you want to.

Therein lies the problem with this economy – not that there isn’t enough to go around, but that it isn’t going around.

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